Lucid files for 1-for-10 reverse stock split requiring shareholder approval
LONDON - Zephyr Energy plc (AIM:ZPHR) announced Tuesday its intention to raise approximately £10 million through a placing of new ordinary shares at 3.0 pence per share to fund an acquisition in the Rocky Mountain region and support development of its Paradox Basin project.
The fundraising will be conducted in two tranches, with £5.3 million to be raised immediately and at least £4.0 million conditional upon shareholder approval at a general meeting scheduled for July 14. Certain directors and management also intend to subscribe for up to £0.7 million in shares following publication of the company’s 2024 annual results.
The proceeds will primarily finance the proposed $7.3 million (£5.4 million) acquisition of working interests in over 400 wells across core Rocky Mountain basins. The acquisition is expected to add approximately 400 barrels of oil equivalent per day (boepd) of production in the first three months following completion, with management estimating it will contribute 600,000 barrels of oil equivalent in 2P reserves.
The remaining funds will support near-term capital expenditure at Zephyr’s flagship Paradox Basin project in Utah, where the company recently reported successful production test results from its State 36-2 LNW-CC-R well.
"The proposed acquisition offers attractive near-term PUD upside with 32 wells drilled in 2024 and 17 drilled but uncompleted wells in the process of completion," the company stated in its announcement based on the press release.
The acquisition portfolio includes 21 wells that will be operated by Zephyr, with the remainder operated by other companies active in the region. With an effective date of June 1, 2025, the acquisition is expected to generate operating income of approximately $4 million in the first twelve months.
Canaccord Genuity Limited and Turner Pope Investments are acting as joint brokers and bookrunners for the placing, with Allenby Capital serving as nominated adviser.
The issue price represents a 20 percent discount to the closing price of 3.75 pence per share on June 23, 2025.
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